odd molly annual report 2011 - Cision

odd molly annual report 2011

ubrik
4 Odd Molly in brief
6 Comment from the CEO
8 Odd Molly’s year in images
10 Odd Molly’s business concept, goals and strategies
12 Odd Molly’s business model
14 Odd Molly in the world
16 Odd Molly’s suppliers
18 Odd Molly’s brand
20 Odd Molly’s design
22 Odd Molly’s share
24 Board of Directors’ report
29 Financial information in summary
30 Consolidated statement of comprehensive income
31 Consolidated balance sheet
32 Consolidated statement of cash flows
33 Consolidated statement of changes in equity
34 Corporate governance

ubrik
Odd Molly isn’t an invented concept.
Odd Molly is for real.
We met 10 years ago and understood immediately that we had a magical
connection and an idea worth building a company on. We saw something
in our meeting that was missing in fashion heaven and liked the idea of
complementing the market, not just competing. Today, 10 years later, we
know we were right.
Our personal commitment to an aesthetic design and feeling hasn’t
changed. We will always give our pens free reign in respectful ignorance
of what trends say we should do. We will always stand up for women as a
phenomenon far beyond what today’s superficial values make her out to
be. These two things are deeply rooted in Odd Molly’s soul, simply because
we are company built on people, on humanity and commitment.
Our message, and our design’s, is for real. It’s wildly beautiful, it’s heartfelt
and it’s needed. In the past, today and in the future.
And, yes, we will always argue affectionately, challenge conventions and
at the same time enjoy a little friendly laugh.
Everyone is an ideal.
You are perfect because you are not.
Vive la difference!
Karin and Per

ubrik
2 Odd Molly annual report 2011

ubrik
Odd Molly annual report 2011 3

odd molly in brief
Odd Molly is a Swedish company that designs, markets and sells fashion for
global market. The company was founded in 2002 and ten years later Odd
Molly’s clothing is sold in 39 countries in Europe, North America, the Middle East,
Japan, Australia and New Zealand.
Odd Molly’s clothing is sold mainly through external retailers, via agents and
distributors, but also through its own sales channels. In 2009 Odd Molly opened
its first store and today has stores in Stockholm and Copenhagen as well as
two outlets in Sweden. In fall 2011 Odd Molly launched its own web shop and
developed a shop-in-shop concept.
Odd Molly is listed on NASDAQ OMX Stockholm and has around 3,650 shareholders.
At year-end 2011 there were a total of 58 employees in Stockholm,
Göteborg, Copenhagen and Los Angeles.
Odd Molly’s vision is to play a distinct and long-lasting role in the international
fashion industry. The company will profitably grow by continuing to create captivating
collections, utilizing its geographical platform and developing its presence
in new and existing sales channels. The corporate culture places a premium
on high quality, creativity and accountability based on an understanding of Odd
Molly’s customer and operating environment.
2011 was a tough year that reflected the difficult market conditions Odd Molly
faces. Net sales decreased from the previous year, but were in line with the
earlier announced order value. The gross margin remained stable at a high level,
while operating profit for the full-year was charged with expenses of about SEK
7 million to close the US store and discontinue the men’s collection.
2011 - numbers
x Net sales amounted to SEK 292.3 million (355.6).
x The gross profit margin was 56.0 percent (56.6).
x Operating profit amounted to SEK 20.1 million (50.7), corresponding to
an operating margin of 6.9 percent (14.3).
x Excluding one-time expenses to shut down the Los Angeles store and
discontinue Post Fire Dew, operating profit amounted to SEK 27.0 million,
corresponding to an operating margin of 9.2 percent.
x Net profit was SEK 14.2 million (36.2). The net margin was 7.3 percent (10.2).
x Earnings per share amounted to SEK 2.48 (6.30).
x Cash and cash equivalents amounted to SEK 80.7 million (89.2) on
December 31, 2011 and the equity/assets ratio was 76.8 percent (80.7).
2011 - events
x Decision to streamline operations is made in September.
-The store in Los Angeles is shut down.
-The men’s collection, Post Fire Dew, is discontinued.
x Warrant program for the CEO and Vice President is approved by
the Extraordinary General Meeting in November.
x Anna Attemark takes over as the new CEO and Jennie Högstedt Björk
as Vice President and Category Manager in December.
x Odd Molly launches its own web shop.
4 Odd Molly annual report 2011

Financial history
2011 2010 2009 2008 2007
Net sales, SEK thousand 292,275 355,551 329,809 267,653 130,260
Operating profit, EBIT, SEK thousand 20,074 50,668 59,179 67,509 18,457
Operating margin, EBIT, % 6.9 14.3 17.9 25.2 14.2
Return on capital employed, % 16.2 39.7 55.6 99.1 67.6
Return on equity, % 10.7 28.0 39.9 71.2 50.6
Equity/assets ratio, % 76.8 80.7 76.2 74.8 75.0
Equity per share, SEK 22.08 24.0 21.00 16.51 8.34
Earnings per share, SEK 2.48 6.30 7.48 8.66 2.39
Dividend per share, SEK *3.00 4.50 3.50 3.00 0.00
Average number of employees 57 50 36 30 19
Net sales per employee, SEK thousand 5,142 7,111 9,086 8,997 6,856
Number of markets 39 40 42 41 31
Number of company-owned stores **5 5 1 – –
* Proposed dividend.
** Two flagship stores in Stockholm and Copenhagen, two
outlets outside Göteborg and Stockholm, and a web shop.
SEK million
160
140
120
100
80
60
40
20
0
Quarterly sales
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
Q1 Q2 Q3 Q4
Other 24%
Sales by country
0
SEK million
160
140
120
100
80
60
40
20
0
Italy 4%
Switzerland 5%
Sweden 43%
Denmark 7%
Germany 8% Norway 9%
Odd Molly annual report 2011 5

ubrik
“There is fantastic potential
in our fine products, strong
brand and skilled people.”
Anna Attemark, CEO of Odd Molly

ubrik
Strong position – with challenges and opportunities ahead of us
A strong corporate culture is a common
denominator of all successful companies,
regardless of their size or business. Understanding
Odd Molly’s values has therefore
been especially important to me since just
before Christmas, when I took over the
helm of a company that had grown substantially
during its first decade, but which
had also reached its first bump in the road.
During the short time I have been with the
company I have focused on understanding
Odd Molly’s opportunities and challenges,
strengths and weaknesses. Who is our customer?
What creates value? And, not least,
what is the company’s soul?
I see it as my role to develop, but also to preserve.
In concrete terms this means reversing
the sales trend as soon as possible and
creating profitable long-term growth.
Starting point
In its ten years on the market, Odd Molly
has produced fantastic sales and built a
strong brand. After several efforts to broaden
the product line, the company decided
in fall 2011 to streamline operations and
focus on the women’s collection and Odd
Molly’s most important markets. This was
a wise decision, in my opinion, and puts
us in position to get us over the hump.
After many years in the fashion industry,
I know that every season and every collection
is a new challenge – and opportunity.
Declining order values in recent seasons
make the challenge that much greater. It
takes time to reverse a negative trend, but
it can be done. My feeling is that we have
to have patience and begin at the beginning,
with our customer, while remaining
true to our brand and creating a balance
in the collections in terms of pricing, category
structure and volumes. We are very
strong today in certain product groups,
while others are still in their infancy.
There are great opportunities here for
development. We have to be willing to
differentiate, eliminate and take greater
responsibility for guiding our customers,
both retailers and consumers, in their
purchases.
Potential
Odd Molly creates designs for women who
want to feel good inside and out. We create
designs that let you be yourself, that you
can feel happy about and look beautiful
wearing. Clearly we have an interesting
position on the fashion map, and we want
to strengthen it.
Odd Molly has fantastic potential in its
fine products, strong brand and skilled
people. The brand is represented by a
large number of retailers, and we have
begun to take control over sales through
our own channels: stores, shop-in-shops
and e-commerce. I see a big opportunity
here to actively drive sales. The web shop
has performed very well since its launch
last fall, and we are gradually opening it to
more markets. With greater control over
sales, we have more flexibility and at the
same time a better understanding of our
end consumer. It gives us an ear to the
ground, which is a big asset in all business
development. The foundation for sales of
Odd Molly’s merchandise, however, will
remain selected external retailers.
Outlook
Right now we are working intensely to
plan upcoming collections. My first fashion
show as CEO of Odd Molly was when we
launched the fall and winter collection
and celebrated our 10th anniversary at
Berns in February. On stage I saw models
that radiated joy, well-being and self-esteem
in clothing that was attractive, colorful
and unique. That’s how we want Odd
Molly to be: as a product and a company.
Odd Molly has carved out a distinctive
position in the market and will continue
to stand for a unique expression and
beauti-ful design with a clear understanding
of our target audience. The market
is tough, and the order value for the first
half-year is significantly lower than the
previous year. We will remain creative,
daring and curious, but we also have to figure
out how to be more efficient. The goal
is to build a stable business that can grow
conceptually and geographically over the
long term. We are working hard to reverse
this sales trend through a better product
range, targeted sales activities and increased
control in our own sales channels.
I am very optimistic – and realistic.
Anna Attemark, CEO of Odd Molly
Anna Attemark
CEO of Odd Molly
Odd Molly annual report 2011 7

ubrik
Odd molly in images
Fashion show at Berns during
Stockholm Fashion Week
In August Odd Molly showed its spring
and summer 2012 collection at Berns
in Stockholm during Mercedes Benz
Fashion Week. The show ended with
the models strolling through neighboring
Berzelii Park to the delight of the public.
Retail concept of the year
Web shop opened
During the year Odd Molly opened its own web
shop - Odd Molly Boutique Online - which serves
as a new sales channel for the entire product line.
At this point the web shop is available to customers
within the EU.
Odd Molly’s stores have received attention for their
original style, distinctive solutions and well thought-out
details that showcase the clothing and the brand. During
the fall Odd Molly was awarded “Design Concept of the
Year” in the fashion magazine Habit’s annual fashion issue.

ubrik
New CEO
In December 2011 Anna Attemark took over as CEO of Odd Molly. Most
recently from H&M’s purchasing department, she brings many years of
experience and extensive knowledge of leadership, business development
and the inner workings of the global fashion industry.
Shop-in-shop
In 2011 a shop-in-shop concept was developed. The concept, a flexible,
turnkey solution with Odd Molly’s distinctive flair, will be launched in
spring 2012.
Odd Molly joins with
Charlotte Kemp Muhl
Odd Molly’s spring/summer 2012
collection is being launched in
collaboration with US model and
musician Charlotte Kemp Muhl.
Photographs of the campaign were
taken in New York in June.
Odd Molly annual report 2011 9

odd molly’s business concept, goals and strategies
Business concept
Odd Molly’s business concept is to design, market and sell fashion primarily
through external retailers worldwide. Odd Molly represents a unique combination
of beautiful design, qualitative values and sensuality.
Vision
Odd Molly’s vision is to establish cooperative relationships with a worldwide
network of retailers that sell Odd Molly products - and thereby play a distinct
and long-lasting role in role in the international fashion industry.
Goals
Odd Molly’s overarching goal is that:
x All its contacts, from end consumers to business partners, will find valueadded
in their relationship with the company,
x Shareholder value will be created through high growth and solid profitability.
Odd Molly’s financial goals were revised in June 2010 as follows:
x A growth rate annually exceeding 20 percent on average in coming years
x An operating margin (EBIT) of over 12 percent over a business cycle
x An equity/assets ratio that over time is at least 40 percent.
Strategies
Odd Molly will profitably grow by continuing to create captivating clothing
collections, utilizing its geographical platform and developing its existing and
new sales channels. The work will be based on a quality-conscious, responsible
and inspiring corporate culture. Odd Molly’s strategic work has the following
priorities.
Balanced collections
Odd Molly will design beautiful clothing for women and create collections with
a good balance between volume, price and fashion.
Broad geographical platform
Odd Molly will continue to build the long-term strength of its brand in current
markets, while evaluating opportunities to expand to attractive new markets.
The main focus is on increasing sales and control in markets where Odd Molly
has the best opportunities to attain a strong long-term market position.
More sales channels
Odd Molly will increase the number of retailers in an optimal way by continuing
to carefully choose retailers and selectively recruiting experienced agents and
distributors. To strengthen the brand and drive sales, Odd Molly will open
its own stores. Moreover, it will expand its e-commerce to achieve broader
distribution as well as establish shop-in-shops in selected retailers.
Innovative marketing
Odd Molly will continue to invest in relationship-building, sales-driving activities
targeted at current and potential partners and customers - with a clear understanding
of the end consumer.
Corporate responsibility
Odd Molly’s organization will maintain the highest level of quality and professionalism
and will be adapted to the company’s long-term needs and growth.
A consideration of stakeholders cuts across the entire company.
10 Odd Molly annual report 2011

ubrik
Odd Molly annual report 2011 11

odd molly’s business model
Odd Molly sells its products primarily through external retailers around the
world. The business model that Odd Molly has chosen is to work through
agents with a clear understanding of the local market, the competition and
particular conditions. In this way, Odd Molly can achieve an optimal mix of
retailers with the right image and brands, without major capital investment.
The agent, or in exceptional cases the distributor, in turn has the exclusive
right to sell Odd Molly’s products in a geographically defined market.
At year-end Odd Molly had 15 agents and five distributors with sales in 29
countries. During the year Odd Molly’s products were sold in another ten
countries, but without local representation by a sales agent. To complement
external retailers and build the brand, Odd Molly also has its own stores
- both physical and online.
Representing Odd Molly
With broad geographical coverage and a network of external partners, it is
important to maintain a close dialogue to ensure that the brand is projecting the
right image. Each season begins with a sales meeting where the new collection
is shown to all agents and distributors. Employees from Odd Molly present their
thoughts behind the collection: inspirations, fabrics and suggested combinations.
The agents are then allowed to borrow a collection from Odd Molly for
sales work in their respective markets. Each agent has a showroom where Odd
Molly’s collections are shown to buyers and retailers. Odd Molly at the same
time shows its clothing at international shows, often together with the agents,
but with its own employees in attendance.
Some collections are also presented at a major fashion show in an international
fashion capital. To date fashion shows have been held in Stockholm, Hollywood
(Los Angeles), Copenhagen and New York, which strengthens sales efforts by
agents.
When Odd Molly has received all the orders from agents and distributors, it can
plan production with its selected manufacturers. In this way, Odd Molly produces
only enough of each item to fill its binding orders, allowing it to maintain
a balance in its inventory and internal resource capacity. Fixed orders and long
lead times between initial order and delivery also mean that revenue for each
financial year can be predicted fairly accurately.
When the merchandise is ready, it is generally delivered by a contracted supplier
to a third-party warehouse in Stockholm, where it is repackaged for shipment
to the retailers. Odd Molly’s contractual partner for each order is the individual
retailer, while the agent receives a commission based on total sales in their
market. Once Odd Molly has sold the products to retailers, they assume the
risk of selling to consumers. It works in much the same way in the US, where
Odd Molly also has a staff familiar with conditions in the American market to
monitor the supply chain.
In the few markets where Odd Molly is represented by a distributor, the sale is
instead to the distributor, which assumes the risk associated with the purchased
merchandise, inventory and sales. In this case the distributor buys the collection
from Odd Molly, at a discounted price, and assumes responsibility for delivering
to retailers and invoicing them.
12 Odd Molly annual report 2011

For its own stores, Odd Molly places orders with suppliers based on budgeted
sales, which means that these quantities, unlike other sales, do not have the
same binding order status as orders from external retailers.
In connection with a shipment, each retailer also receives signage and logos
to decorate stores, all of which is produced centrally by Odd Molly. With this
business model, the local agent normally maintains contact with the retailers,
although Odd Molly hopes to work more closely with store employees around
the world to maintain the right feeling and correctly display the brand. The
sales organization was reorganized in 2011 to better focus on Odd Molly’s key
customer relations.
The eyewear and skincare product groups are developed in cooperation with
licensees. Odd Molly’s agents sell these products to current retailers using the
same business model as other products. The licensees also sell the products
to specialized retailers such as opticians and cosmetics stores, and Odd Molly
receives a royalty.
Selling Odd Molly ourselves
Odd Molly has two of its own flagship stores in central Stockholm and Copenhagen.
The two outlets, outside Göteborg and Stockholm, allow Odd Molly’s
downtown stores to reduce the length of sales and keep their merchandise
fresh. The outlets at the same time provide an opportunity to extend the sales
period for previous seasons’ collections.
In August 2011 Odd Molly launched its own web shop, where the whole collection
is sold directly to consumers. The launch in the Swedish market has gone
well and demand is growing. A few months after its opening the web shop
began accepting customers throughout the EU, with more growth expected.
The aim is that this new sales channel will complement the current stores, the
Group’s own and external, and eventually generate higher revenue. All merchandise
is distributed from the warehouse in Sweden.
A shop-in-shop solution was launched in spring 2012 in Uppsala, where Odd
Molly has developed a flexible retail solution with a distinctive brand expression.
Odd Molly annual report 2011 13

odd molly around the world
In 2011 Odd Molly’s clothing was sold in a total of 39 countries and it had local
representatives in 28 countries through 15 independent agents and five distributors.
Odd Molly’s products are sold at the same time by around 1,300 retailers.
The network is continuously adapted to ensure that the brand is properly
managed in each market.
Selling Odd Molly
Odd Molly is a global brand active in the upper mid-price segment of the
women’s clothing market, which it defines as “within reach.” The large part of
Odd Molly’s sales is currently in Western Europe and North America, but the
brand is also represented in Australia and New Zealand as well as in the Middle
East, Russia and Asia. Odd Molly is sold in everything from exclusive boutiques
around the world to trendy designer shops and well-known department
stores. The overarching aim is to grow Odd Molly’s presence and sales in its
established international market.
Sweden is Odd Molly’s first and largest market. The strategy in Sweden is to
be highly selective in adding new retailers and instead work more closely with
current retailers and create growth through a higher sales volume.
Choosing Odd Molly
The apparel market is intensely competitive. Moreover, the last year has been
distinguished by tough market conditions, with declining sales across the industry
in Sweden and economic difficulties in many of Odd Molly’s markets, which
makes it even more important to offer the right merchandise and understand
the customer. Strong brands and distinctive concepts have grown in importance,
since price sensitivity is considered lower in this market segment.
Odd Molly believes that consumer awareness and opinions of the brand are key
competitive factors, alongside what perhaps sets Odd Molly apart: its unique
design and high quality. This makes the ability to build strong customer loyalty
and continuous product development important success factors.
Since the beginning Odd Molly has protected and strengthened its special
qualities, carving out a defined niche in the fashion industry. Conscientious
efforts are made to maintain the Odd Molly identity and to always return to
the brand’s original concept. From this perspective, Odd Molly is its own biggest
competitor, although it naturally competes with several other companies for the
same consumer spending.
Odd Molly’s six largest markets (Sweden, Norway, Germany, Denmark,
Switzerland and Italy) accounted for about 77 percent (76) of total sales in
2011. The adjacent figure shows Odd Molly’s six largest markets in 2011.
14 Odd Molly annual report 2011

Sales by country
SEK million
160
140
120
100
80
60
40
20
0
Sweden Noway Germany Denmark Switzerland Italy
SEK million
160
140
120
100
80
60
40
20
0
Other
2010
2011
Odd Molly annual report 2011 15

odd molly’s suppliers
our man in portugal
In Portugal, Odd Molly has chosen to work with a purchasing agent that provides contacts
with the best manufacturers in the country, a business managed by Ilidio. Portugal has a
unique tradition in men’s shirts, for example, that can’t be found anywhere else in the world.
The quality produced here feels very much like Odd Molly.
“As an agent, we are responsible for overseeing the whole textile production
process for our customers. This means everything from developing materials,
accessories and patterns to manufacturing and quality control. Our aim is to be
part of our customers’ business, and this fits perfectly with Odd Molly’s way of
seeing its collaborations,” says Ilidio.
Ilidio’s company works with all types of products – from wovens to knits – and strictly with
the most reliable producers in Portugal. The country also has some of the world’s finest
laundries.
“Odd Molly has been part of our lives for ten years. We met Odd Molly at a
trade show in Copenhagen, when the brand was in its infancy. Naturally, there
was a big risk, but they were different than other brands. The first conversation
with Karin and Per stood out. Their idea was bold, their products were fantastic
and they really knew what they wanted.”
The relationship has blossomed since the first collection, and is built on continuous dialogue
and strong commitment.
“In my eyes, Odd Molly isn’t just a company. It is a group of people who live the
brand, know their partners and are very easy to do business with. I have a clear
memory of a seamstress at her sewing machine, when we were sewing up samples
of Odd Molly’s merchandise, who said she didn’t find work boring, since
the end result was such a beautiful piece of clothing.”
Odd Molly has grown substantially, so naturally the demands it makes have changed along
the way. This includes Fair Wear Foundation practices and the introduction of the EU’s
chemical regulation, REACH. These issues are important to the consumer, but even more
important to the entire supply chain. Ilidio and his coworkers are constantly making sure that
the selected Portuguese suppliers follow the rules.
16 Odd Molly annual report 2011

handpicked in morocco
Odd Molly has a close cooperation with a family-owned company in Morocco that
specializes in manufacturing knits and crochets. The family originally comes from India,
and its 200 employees work partly by hand, but mostly with machines imported from
Germany and yarns from Italy.
“We began working with Odd Molly in 2005, and the business has grown every
year,” says Sanjay, who runs the family business together with his cousin. “What
makes Odd Molly one of our favorite customers is the level of creativity. Its
products require us to take our production to another level. Each season means
new techniques, new yarns, new crochet hooks and fascinating new ideas. In the
last two years we have invested in eight new machines to keep pace with Odd
Molly’s technically demanding products.”
Sanjay’s factory and Odd Molly are constantly working together, with several collections at
various stages.
“We see Odd Molly as a partner more than a customer, and because of that we
give more of our time, energy and commitment to make sure they are satisfied.
We are mutually dependent on each other. We receive interesting and challenging
orders, and we promise to do our best to deliver a quality product on time.”
What sets producing a garment from Odd Molly apart, according to Sanjay, is the feeling
of something unique, creative and design-driven.
“The degree of complexity in the knitting and crocheting challenges us every
season,” he adds. “At times when we’ve thought we had reached the absolute
maximum our machines could tolerate, we’ve been proven wrong. Today we
can combine a more small-scale way of working with industrial production.”
Odd Molly annual report 2011 17

odd molly’s brand
A decisive factor in Odd Molly’s success is consistent branding - built on
inconsistency and surprise. Odd Molly maintains a long-term focus, but never
forgets to challenge norms and find new ways to develop and communicate the
brand. At the same time it is important that there is an integrity and relevance
to contexts where the brand is represented.
Building the Odd Molly brand
For an international business like Odd Molly, it is critical to project the right
image of the brand at every level. The company’s own stores, including the
web shop, play a key role in this respect, as does everyone who represents
Odd Molly. All employees and partners around the world are informed of Odd
Molly’s core values, which are formulated in an Odd Molly manifesto. In addition,
personal meetings, continuous dialogue and close relationships with agents,
distributors and suppliers are important components in the international
branding work.
At least twice a year employees from Odd Molly and all brand representatives
meet to view the new collection, share impressions and discuss for the brand’s
philosophy: “love, courage and integrity.” Local agents and distributors are then
responsible for day-to-day brand management in their respective markets, with
support from the Stockholm office and contracted international PR agents.
In addition to creative branding, the work done to protect the brand worldwide
is also important. Odd Molly works continuously to create and expand brand
protection in markets where it is represented and in other markets for strategic
reasons. The company monitors any registrations of the Odd Molly name or
copies of Odd Molly’s unique design, and takes action when it occurs.
Wearing Odd Molly
Odd Molly’s clothing is positioned in the upper mid-price segment, which Odd
Molly defines as “within reach.” Odd Molly’s mission is to preserve the unique,
sensuous and individualistic qualities that appeal to women around the world.
One of the ideas behind Odd Molly was to create clothing “for the love of
feeling good.”
Odd Molly has created a sense of belonging and community among its target
group: women in a broad age range. Odd Molly’s target group is best described
as women of many ages from a variety of cultures - often with an active lifestyle
they combine with moments of relaxation. Women with passion and heart,
who like to feel good inside and out. Odd Molly’s clothing celebrates women as
they are: “You are perfect because you are not.”
Showcasing Odd Molly
Odd Molly’s marketing activities are designed to build awareness and strengthen
the Odd Molly brand, which in the long run will generate increased sales of
the company’s products. All marketing material is produced internally, but is
adapted to local markets around the world in cooperation with each agent or
distributor.
Marketing is done through a number of channels, one of the most important
of which is international fashion shows, which provide an opportunity to sell
to retailers, cultivate media sources and meet potential agents and distributors.
The channel where Odd Molly is increasing its presence the most is social
media, where it is working actively to find the right forums in the social world.
Another important marketing channel for Odd Molly is to use PR to get media
coverage. Odd Molly currently works with PR agents in major markets in Europe
and the US, which handle a variety of media activities, lend clothing samples
to TV shows and fashion shoots, and arrange product placements. Odd Molly
also utilizes PR centrally for contacts with the trade media, business press and
shareholders.
18 Odd Molly annual report 2011

Odd Molly holds fashion shows annually in an international fashion capital and
has run ad campaigns in leading fashion magazines aimed at consumers using
models such as Helena Christensen, Daisy Lowe and Charlotte Kemp Muhl.
In addition, Odd Molly’s stores and web site are obviously important marketing
and branding channels, where consumers can view every article in the entire
current collection – and as of fall 2011 can order merchandise directly from the
web shop. They also provide Odd Molly the opportunity to improve customer
relations through targeted campaigns. Customers who register on Odd Molly’s
online shop receive regular updates on merchandise and certain benefits compared
with other customers, such as access to presales and advance notice
when new products are in stock.
Odd Molly årsredovisning 2011 19

odd molly’s design
Odd Molly’s clothing has a design all its own – a unique style that brings to mind
a Sunday morning, the day of the week many people find the most enjoyable,
free from obligations and demands. The design team, consisting of eight
people, gets its inspiration from important issues facing women from various
cultures around the world and has a great interest in people and fashion. Still,
Odd Molly doesn’t kowtow to current trends, instead expressing the times in
which we live in a personal way. The goal is to design innovative collections that
reflect the soul of the brand and at the same time have commercial appeal.
The designs often incorporate a wealth of details, many hand-sewn. For
example, fabrics, prints and embroideries are created from the ground up by
Odd Molly’s design team. Since the company’s start, every collection has had a
specific theme encapsulated by a unifying message. To further underscore the
feeling and theme of each collection, small messages are printed on the in- or
outside of each item, sometimes together with a visible product number.
Creating Odd Molly
Before orders are taken for each collection, the design team presents the current
theme to Odd Molly’s agents and distributors. They receive a thorough
review of the choice of materials, colors, models and technical details of the
collection. Odd Molly’s chief designer summarizes the most important ideas
behind each collection in a letter to all partners. Key items and suggested combinations
are now presented as well.
Six collections are produced each year, but are sold in two cycles: pre-spring
and the spring and summer collections, followed by pre-fall and the fall and
winter collections. The biggest collections in terms of volume are spring and fall,
while the summer and winter collections are less extensive. Due to growing demand
from customers, limited pre-collections to the main collections have been
sold in recent seasons to even out the product flow and provide an opportunity
for additional sales.
The collections are divided by the design team into programs based on qualities,
techniques, patterns or color combinations.
Producing Odd Molly
The design team works closely with the purchasing and production department.
Since its products include many hand-sewn details, Odd Molly also works closely
manufacturers and often utilizes each supplier’s specific expertise. Marketing
and sales are coordinated with the design team to communicate the collection’s
message and get feedback from the market. Customer service and store
employees are also important sources of customers’ thoughts and opinions. To
assure the quality of its products, Odd Molly regularly visits its manufacturers
around the world. With more detailed products, larger collections, higher quantities
and more suppliers, this work becomes even more important.
20 Odd Molly annual report 2011

Being Odd Molly
Tops are the mainstay in Odd Molly’s collections, which normally consist of
around 750 products for spring/summer and fall/winter, respectively, including
every color and item. The goal is to have a balanced mix of basics and more
detailed, unique items to create both continuity and surprise.
Odd Molly’s products are produced mainly from natural materials such as
cotton, wool and silk, and are often stitched partly by hand.
The collection was more clearly segmented in 2011 to create a better balance
between the more detailed, distinctive designs and high-volume products.
Among other things, this makes it easier to market to different types of retailers.
Complementing Odd Molly
Skincare
In 2009 Odd Molly launched its own line of skincare products, which are manufactured
under license. The licensee is responsible for product development of
the skincare and body line, while Odd Molly’s design and brand team is in charge
of selecting the products, their feel and sense, packaging and all sales and marketing
materials. The line includes body, hand and foot care products as well as
shower products, lip balm and sun protection.
Eyewear
Odd Molly also entered into a licensing cooperation for eyeglass frames and
sunglasses in spring 2010. The collection has been developed collaboratively by
the licensee and Odd Molly’s design team. Odd Molly is ultimately responsible
for all marketing materials and handles sales of sunglasses to current retailers,
while the licensee is responsible for sales to opticians and other professional
eyewear retailers in the Nordic region. The products are sold by, among others,
Synsam and in SAS airline catalog.
Odd Molly annual report 2011 21

odd molly’s share
The purpose of Odd Molly’s communication with the capital market is to build
confidence in the company and its development among investors, minimize the
risk of rumors and speculation, and increase interest and liquidity in the share.
Odd Molly respects its relationships with shareholders and the rest of the capital
market, and its aim is that the information it provides will be distinguished by
quality, reliability, continuity and promptness.
On June 21, 2010 Odd Molly moved its share from First North to NASDAQ
OMX Stockholm. The listing change allows more investors to invest in the share.
The Odd Molly share was initially listed on First North on June 18, 2007. The
sales price at the time was set at SEK 40 and the company added slightly over
2,000 new shareholders.
Market capitalization and turnover
The final price paid on December 31, 2011 was SEK 31.40 (74.50), giving Odd
Molly a market capitalization of SEK 180.6 million (428.5). During the financial
year the average turnover was about 6,333 shares per day (49,800). A total of
1.6 million Odd Molly shares (10.9) were traded at a value of SEK 81.6 million
(353.0). The lowest price paid was SEK 29.50 (December 20, 2011) and the highest
price was SEK 78.25 (January 20, 2011). In 2011 the share declined by 58.4
percent, compared with a decrease of 51.2 percent in 2010. During the financial
year 2011 the OMXSPI Index fell by 18.3 percent.
Share capital
At December 31, 2011 Odd Molly’s share capital amounted to SEK 575,200,
distributed among 5,752,000 shares with a quota value of SEK 0.1 per share.
According to the Articles of Association, the share capital shall amount not less
than SEK 500,000 and not more than SEK 2,000,000, distributed among not
fewer than 5,000,000 and not more than 20,000,000 shares. Odd Molly has only
one class of share. The shares are issued in accordance with Swedish law and
are denominated in Swedish kronor. Shareholders’ rights can only be amended
in accordance with the rules of the Swedish Companies Act (2005:551). Each
share carries the same entitlement to share in the company’s assets and earnings.
At the Annual General Meeting each share carries one vote and all shareholders
can vote for the full number of shares they hold without restrictions on
their voting rights. The shares can be freely transferred.
Share-based incentive program
Odd Molly has one outstanding incentive program based on warrants in
Odd Molly International AB. The program, which was established by the
Extraordinary General Meeting on November 25, 2011 based on the proposal
of Odd Molly’s Board of Directors, issued 300,000 warrants to Odd Molly
International AB for transfer to the incoming CEO and Vice President. For
more information on the program, see page 30 and oddmolly.com.
Changes in share capital
Increase in Total no. Increase in Total share
Year Transaction no. of shares of shares capital, SEK capital, SEK
2002 Formation 1,000 100,000
2003 New share issue 110 1,110 11,000 111,000
2005 100-to-1 split 109,890 111,000 111,000
2005 New share issue 11,000 122,000 11,000 122,000
2007 41-to-1 split 4 880,000 5 002,000 122,000
2007 Bonus issue 5 002,000 378,200 500,200
2007 New share issue 750,000 5 752,000 75,000 575,200
Share performance
SEK
200
150
100
50
30
2007 2008 2009 2010 2011 2012
Number (thousands)
2,000
1,500
1,000
500
The share
OMX Stockholm PI
Number of shares traded,
thousands (incl. after-hours trading)
22 Odd Molly annual report 2011

Dividend policy
The Board of Directors of Odd Molly will recommend that the Annual General
Meeting approve a dividend of SEK 3.00 (4.50) per share for the financial year
2011. The Board’s goal is to annually recommend that the AGM resolve to pay
a dividend corresponding to at least 40 percent of the company’s profit to
the shareholders. Before issuing its recommendation, the Board will consider
whether there is the possibility to pay a dividend of this size. In its evaluation,
the Board will consider a number of factors, including the company’s operations,
operating profit and financial position, current and anticipated liquidity needs,
expansion plans and other significant factors.
Largest shareholders as of December 31, 2011
No. of votes/
Ten largest shareholders No. of shares capital, %
Kattvik Financial Services 1 039,763 18.08
M2 Capital Management AB 900,000 15.64
A.T.V Holding AB 864,471 15.03
Jimfelt Ghatan, Karin 537,921 9.35
Swedbank Robur Small Cap Fund Sweden 292,528 5.09
New Moon Förvaltning AB 152,867 2.66
AMF Small Cap Fund 148,150 2.58
NTC TR Guernsey Treaty Client 144,093 2.51
SEB Life Ireland 100,000 1.74
Holknekt, Per 74,300 1.29
Total, ten largest shareholders 4,254,093 73.97
Other 1,497,907 26.03
Total 5,752,000 100.00
Ownership structure as of December 31, 2011
On December 31, 2011 Odd Molly had 3,650 shareholders (4,204), according to
Euroclear Sweden AB. Odd Molly’s ten largest shareholders held shares corresponding
to 74.0 percent (74.1) of the votes and capital in the company. Foreign
ownership amounted to about 7.9 percent (3.9) at December 31, 2011.
Sharholder No. of No. of Market value
structure shareholders % shares % (SEK 000)
1 – 500 3,259 7.17 412,613 7.17 12,956
501 – 1,000 210 3.03 174,280 3.03 5,472
1,001 – 5,000 131 5.10 293,554 5.10 9,218
5,001 – 10,000 22 2.71 156,016 2.71 4,899
10,001 – 15,000 7 1.55 89,187 1.55 2,800
15,001 – 20,000 1 0.30 16,990 0.30 533
20,001 – 20 80.13 4 609,360 80.13 144,734
Total 3,650 100.00 5 752,000 100.00 180,613
Key data per share
2011 2010 2009 2008 2007
Equity per share, SEK 22.08 24.00 21.00 16.51 8.34
Earnings per share, SEK 2.48 6.30 7.48 8.66 2.39
Dividend per share, SEK *3.00 4.50 3.50 3.00 0.00
Outstanding number of shares
on the closing day 5,752,000 5,752,000 5,752,000 5,752,000 5,752,000
* Proposed dividend
Odd Molly annual report 2011 23

Board of Directors’ report
The Board of Directors and CEO of Odd Molly International AB (publ), corporate
registration number 556627-6241, hereby present the annual report and consolidated
accounts for the financial year January 1–December 31, 2011.
The company was registered with the Swedish Companies Registration Office
on June 27, 2002 and has its head office in Stockholm. Odd Molly’s legal structure
comprises the Parent Company, Odd Molly International AB (publ), and the wholly
owned subsidiaries Odd Molly, Inc., which is registered in Delaware, in the US, and
Odd Molly Denmark ApS, in Denmark. The principal operations are conducted by
Odd Molly International AB, while Odd Molly Inc. conducts Odd Molly’s operations in
the US from Los Angeles and Odd Molly Denmark ApS conducts retail operations in
the Danish market.
Odd Molly share and ownership structure
Odd Molly’s initial listing was on First North on June 18, 2007, and on June 21, 2010
the Odd Molly share moved its listing to NASDAQ OMX Stockholm.
The total number of shares in Odd Molly is 5,752,000, distributed among one class
of share. On December 31, 2011 Odd Molly had 3,650 shareholders, around 97
percent of whom were registered in Sweden. About 45 percent of shareholders were
men, 49 percent women and 6 percent legal entities. The four largest, whose holdings
amounted to 58 percent, were Kattvik Financial Services AB, M2 Capital Management
AB, ATV Holding AB and Karin Jimfelt-Ghatan. For more information, see the section
on Odd Molly’s share on page 28.
Odd Molly has one outstanding incentive program based on warrants in Odd Molly
International AB. The program, which was established by the Extraordinary General
Meeting on November 25, 2011 based on the proposal of Odd Molly’s Board of
Directors, issued 300,000 warrants to Odd Molly International AB for transfer to the
incoming CEO and Vice President.
Operations
Odd Molly is a Swedish company that designs, markets and sells fashion mainly
through external retailers worldwide. Its products are distinguished by beautiful, personal
and sensuous design, combined with high quality and a distinctive profile.
As a rule, Odd Molly is represented by external agents or distributors around the
world, which are responsible for geographically defined markets. The business model
facilitates expansion with limited operational risk and tied-up capital, while retaining
control over the concept and brand. To complement the external retailers, Odd Molly
opened its first concept store in February 2009 on Humlegårdsgatan, in Stockholm. In
2010 Odd Molly opened two additional company-owned concept stores, in Copenhagen
and Los Angeles, and two outlets in Kungsbacka and Barkarby. In 2011 a decision
was made to close the store in Los Angeles. A web shop – Odd Molly Boutique
Online – was launched in fall 2011.
Significant events during the year
Management changes
In June 2011 a decision was made to name a new CEO of Odd Molly when Christina
Tillman announced her desire to step down after nearly seven years as CEO. The new
CEO of Odd Molly is Anna Attemark. She was most recently development manager
in H&M’s purchasing department and is expected to add extensive experience and
great knowledge of leadership, business development and the workings of the global
fashion industry.
In December 2011 Anna Attemark took over as the new CEO of Odd Molly. At the
same time Jennie Högstedt Björk took over as Vice President and Category Manager.
Streamlining operations
In connection with the release of the order value for the spring and summer 2012
collection, Odd Molly announced in October 2011 that a number of measures will be
taken to fully focus on developing the core business and the company’s main markets.
Among other things, the company’s US concept store is being closed and the
men’s collection, Post fire dew, has been discontinued, which together are expected
to result in cost savings of about SEK 10 million on an annual basis.
Establishment of warrant program
The Extraordinary General Meeting on November 25, 2011 resolved to introduce a
warrant program. The general meeting resolved to issue 300,000 warrants, each
entitling the holder to subscribe for one (1) new share in Odd Molly International AB.
The subscription price corresponded to 120 percent of the average last price paid
on NASDAQ OMX Stockholm during period November 10, 2011 through November
24, 2011. The warrants were exercisable at market value from November 28 through
December 5, 2011 by Odd Molly’s incoming CEO, Anna Attemark (not more than
150,000 warrants), and incoming Vice President, Jennie Högstedt Björk (not more
than 150,000 warrants). The warrants were fully subscribed.
If the warrants are fully exercised, Odd Molly’s share capital will increase by not
more than SEK 30,000, corresponding to a dilution of approximately 4.96 percent of
the total number of shares and votes in Odd Molly.
Sales and revenue 2011
Parent Company
Sales in the US are handled through wholly owned subsidiary Odd Molly Inc. Odd
Molly also has a subsidiary in Denmark, Odd Molly Denmark ApS, which is responsible
for retail operations in the Danish market. All sales are otherwise handled through
the Parent Company, Odd Molly International AB.
The Parent Company reported net sales for the year of SEK 280.4 million (341.5)
with operating profit of SEK 21.5 million (55.7). The Parent Company’s shareholders’
equity amounted to SEK 89.7 million (104.4). Cash and cash equivalents amounted to
SEK 78.6 million (86.7).
24 Odd Molly annual report 2011

Group
Net sales
Net sales amounted to SEK 292.3 million (355.6), a decrease of about 18 percent
compared with the previous year but in line with the previously announced order
value. Sales include the company’s own concept stores in Stockholm, Copenhagen
and the recently closed store in Los Angeles, as well as the two outlets and the web
store opened during the third quarter. The previously published order value for 2011
was SEK 294 million. The difference compared with the final outcome is partly due to
exchange rates and partly to the strict credit controls maintained prior to delivery.
In 2011 Odd Molly’s merchandise was sold in 39 countries, 28 of which were
through local representatives via 15 independent agents and five distributors.
Products were sold without representatives in 11 countries. Odd Molly’s six largest
markets (Sweden, Norway, Germany, Denmark, Switzerland and Italy) accounted for
approximately 77 percent (76) of total sales in 2011.
Earnings
The gross profit margin was 56.0 percent (56.6). A one-time inventory write-off of
about SEK 4 million adversely affected the gross profit margin. Excluding the effect of
the write-off, the gross margin was 57.4 percent.
Operating profit amounted to SEK 20.1 million (50.7), corresponding to an operating
margin of 6.9 percent (14.3). Expenses of SEK 6.9 million to shut down the Los
Angeles store, discontinue the men’s collection and write off inventory were charged
against profit for the period. In addition, other inventory was written down by SEK 2
million.
Other external expenses, largely consisting of agent commissions, marketing, product
distribution, rents and other expenses for stores and offices, amounted to SEK
99.9 million (108.6) during the year, corresponding to 34.2 percent (30.6) of sales. The
2010 figure included expenses of SEK 4.2 million for the listing change to NASDAQ
OMX Stockholm in other external expenses.
Personnel expenses amounted to SEK 38.8 million (33.9), or 13.3 percent of net
sales, compared with 9.5 percent in the previous year. An increased number of stores
and scheduled hirings elsewhere in the organization were the main reasons for the
higher costs compared with the previous year.
Other operating expenses of SEK 1.3 million (5.4) were charged against profit and
included a net currency loss.
Operating expenses can be divided into six principal items: cost of goods, including
freight and customs duties; commissions to local agents; marketing and PR, including
trade show costs; distribution to retailers, personnel costs and other costs. The first
two and distribution costs essentially vary directly in relation to sales, while marketing
and PR are tied to growth, but revenue from them is not generated until subsequent
years. Other costs consist mainly of central costs for the head office’s organization
and consulting costs. A business model with early binding orders from retailers allows
Odd Molly to adjust resources and costs as its sales and needs change.
Net profit amounted to SEK 14.2 million (36.2). The number of shares outstanding at
year-end was 5,752,000. Earnings per share amounted to SEK 2.48 (6.30), based on
the average number of shares for the period.
Seasonal fluctuations
Odd Molly has six collections per year (spring, summer, fall, winter and two precollections,
pre-spring and pre-fall), of which spring and fall have historically generated
the highest sales. Odd Molly’s operations are highly seasonal; the first and third
quarters are strong, while the second and fourth quarters are considerably weaker.
Consequently, it is better to follow the company’s operations, sales and profits on a
semiannual basis. To even out deliveries and boost sales, Odd Molly has added two
additional shipments: pre-spring in early December and pre-fall in early July (late June
as of 2011).
Financial position
The company’s total assets amounted to SEK 165.3 million (171.0) on December
31, 2011. Shareholders’ equity amounted to SEK 127.0 million on the same date,
compared with SEK 138.1 million on December 31, 2011. The equity/assets ratio was
76.8 percent (80.7) at the end of the period. Cash and cash equivalents amounted
to SEK 80.7 million (89.2) on December 31, 2011. The company has no long-term
liabilities.
Accounts receivable amounted to SEK 28.1 million (38.4) on December 31, 2011.
As a share of full-year sales, total receivables decreased from 10.8 percent in 2010
to 9.6 percent in 2011. The age of the receivables has increased slightly with a higher
share of older receivables than before. To minimize the risk of losses, customers’
credit ratings are continuously monitored. In 2011 realized customer losses corresponded
to 0.6 percent (0.4) of sales.
Inventories amounted to SEK 27.8 million on December 31, 2011, against
SEK 23.2 million a year earlier. As a share of sales for the full-year 2011, inventory
amounted to 9.5 percent, compared with 6.5 percent in the previous year. The main
reason for the higher level was an earlier delivery of spring merchandise, valued at
about SEK 4 million, compared with the previous year. The value of the inventory was
written down by SEK 4 million, of which SEK 2 million relates to a write-down of the
men’s collection, which was discontinued during the year.
Investments and cash flow
The company’s investments mainly comprise equipment, further development of IT
systems and the new web shop. Total investments for the full-year 2011 amounted to
SEK 1.8 million (6.6), which is explained by the fact that four stores were opened in
2010.
Cash flow from operating activities amounted to SEK 18.7 million during the year,
compared with SEK 31.0 in 2010. The dividend payment in 2011 was SEK 25.9 million
(20.1). Total cash flow amounted to SEK -8.5 million (4.3) for the full-year 2011.
Odd Molly annual report 2011 25

Remuneration guidelines for the CEO and other senior executives
The Annual General Meeting on April 14, 2011 resolved that the remuneration for the
CEO and other senior executives will comprise a base salary, variable remuneration
(where applicable) and other benefits, including a pension.
Total remuneration will be market based and competitive in relation to each
individual’s responsibility and authority. Variable salary will be paid in cash, based on
performance in relation to predefined, measurable targets, and will be maximized
in relation to the target salary. Variable remuneration can never exceed base salary.
If terminated by the company, the period of notice will not extend beyond twelve
months. Severance will not be paid. Pension benefits will be either defined benefit or
defined contribution, or a combination of the two, entitling senior executives to receive
a pension from age 65. The Board of Directors may deviate from these guidelines only
in exceptional cases where special reasons exist.
The Board of Directors has proposed to the 2012 Annual General Meeting that the
remuneration principles for the CEO and other senior executives remain unchanged in
2012.
Employees
At year-end Odd Molly had 58 employees (57), including 2 in the US and 3 in Denmark.
Of the 58 employees, 7 were men and 51 women. The average number of
employees in 2011 was 58 (56).
Environmental and social responsibility
Odd Molly takes a keen interest in its fellow man and the environment and how they
are affected by its operations. Odd Molly has no proprietary production. Instead its
collections are produced by carefully selected suppliers. Since 2009 Odd Molly has
been a member of the Fair Wear Foundation, an independent organization that seeks
to improve working conditions in the textile industry. As a member, Odd Molly has
undertaken to comply with the Fair Wear Foundation’s Code of Labor Practices and
make independent inspections of its manufacturers. For more information on Odd
Molly’s corporate responsibility work, see page 24.
Risk factors
There are a number of factors beyond Odd Molly’s control that can negatively impact
the company’s operations, results and financial position, in addition to other factors
whose impact Odd Molly can influence through its actions. The risk factors described
below are considered to have a significant impact on Odd Molly’s future outlook. The
risks are not ranked, nor is the list intended to be comprehensive. Additional risks and
uncertainties that Odd Molly is not aware of or which currently are not considered
material may also become important factors for Odd Molly.
Operational and industry-related risks
Market risks
Competition
Odd Molly is active in the highly competitive fashion industry, where several competitors
are very large and have considerable capital, allowing them to adapt their operations
to changes in customer demand, devote considerable resources to the marketing
and design of their products, and achieve greater brand awareness. Although Odd
Molly has held its own against the competition to date, there are no guarantees that
the company will keep pace with current and future competitors. Increased competition
could lead to price pressure and the loss of market share, which could have a
significant impact on Odd Molly’s operations, results and financial position.
Supplier risks
Odd Molly has no proprietary production and is totally dependent on its suppliers to
provide merchandise. The company uses a number of suppliers in different countries,
however, and thus is not dependent on any single supplier for its operations. For
Odd Molly, it is essential that goods are delivered on time. The loss of one or more
suppliers or delay or loss of shipments could have a negative impact on the company’s
operations, results and financial position. Some of Odd Molly’s products are
manufactured in developing countries, where working conditions and environmental
regulations differ in many respects from the countries where the products are sold.
Consumer products companies with suppliers in developing countries can be susceptible
to criticism of working conditions, product quality and environmental impacts.
Negative exposure on such issues could affect trust in the company’s brand and
lead to lower demand for its products, thereby impacting the company’s operations,
results and financial position. Since 2009 Odd Molly is a member of the Fair Wear
Foundation, which is working to improve conditions for employees at the factories that
manufacture Odd Molly’s products. Odd Molly regularly visits its suppliers to ensure
as far as possible that they comply with the Fair Wear Foundation’s Code of Labor
Practices. However, Odd Molly cannot control everything its suppliers do, and in
spite of the measures it has taken the company cannot rule out that demand for Odd
Molly’s products could be affected or that Odd Molly’s brand could be damaged due
to violations of the Code of Labor Practices or current regulations.
Import quotas
Odd Molly purchases a portion of its products from countries outside the EU. As
a way to strengthen certain industries in Europe, the EU has in certain instances
introduced import restrictions on goods such as clothing, which can affect purchasing
costs. Since Odd Molly’s product range maintains a high quality and therefore
commands a higher price, the potential impact is relatively limited compared with
companies in the discount segment. Still, there is the possibility that future trade
restrictions, including higher customs duties, protective measures or quotas on clothing,
could force the company to change its purchasing routines and raise purchasing
costs, which in turn could negatively affect the company’s operations, results or
financial position.
26 Odd Molly annual report 2011

Economy
Economic conditions can raise or lower demand for Odd Molly’s products.
Business risks
Ability to manage growth
Odd Molly’s operations have undergone rapid organic growth to date, which has
placed demands on the management and on the operating and financial infrastructure
of the company. As its personnel and operations continue to grow, Odd Molly must
ensure that effective planning and management processes are in place to implement
the business plan. At present the company believes it has the capacity to handle a
significant revenue increase. If Odd Molly is unsuccessful in effectively managing its
growth, it could affect the company’s operations, financial position and results.
Expansion of operations
Odd Molly’s future growth is dependent on, among other things, the ability of current
retailers to increase their sales of Odd Molly’s products and that more retailers begin
to sell Odd Molly’s products. If Odd Molly does not succeed in expanding by adding
more retailers, it could significantly affect the company’s growth opportunities as well
as its operations, results and financial position.
Odd Molly sells to external retailers through agents and distributors with exclusive
rights to their respective markets. Marketing and sales results depend in large part
on the knowledge, experience and commitment of these agents and distributors.
To retain strong partners in the long term, Odd Molly considers it important to offer
competitive terms and build strong relationships. To avoid having agents block their
markets with low sales, contracts stipulate minimum levels below which they can be
terminated and a new cooperation agreement signed with another agent or distributor.
Odd Molly continuously evaluates complementary distribution channels in the form
of company-owned stores. There is no guarantee that these stores will generate a
sufficient return to cover the initial investment. Moreover, access to attractive store
locations will affect any expansion.
Dependence on key persons and employees
Odd Molly’s future success is highly dependent on the knowledge, experience and
commitment of its management and other key employees. Odd Molly has signed employment
agreements with key persons on what the company considers competitive
terms. Odd Molly regards its entire staff as an important asset and works continuously
to maintain the right human resource policies. Nevertheless, there is no guarantee that
Odd Molly will be able to retain these key persons or will be able to recruit qualified
staff in the future. If any of the company’s key employees resigns, it could have a
negative effect on Odd Molly’s operations, results and financial position.
Intellectual property protection
Its brand is of critical importance to Odd Molly’s position and success. Copying the
Odd Molly brand or distribution and sale of Odd Molly’s products without the company’s
permission would damage the brand, customers’ trust in Odd Molly’s products
and the company’s profitability. Moreover, opportunities to expand to new markets
could be limited if, for example, a third party in a country has a registered trademark
similar to Odd Molly’s. Odd Molly actively protects its trademarks and continuously
monitors its protection. However, there is no guarantee that the measures Odd Molly
takes to create, protect and monitor use of its intellectual property are sufficient. If
Odd Molly’s trademarks are damaged, it could negatively affect the company’s operations,
results and financial position. There is also the possibility that designers, stores
and others claim that Odd Molly’s products are infringing on their intellectual property
rights. Even if the company currently is not involved in any such legal disputes, there
are no guarantees that such claims will not be made against the company in the
future. If this occurs, it could require considerable expenditure for the company’s legal
defense and to pay any damages. If the company cannot defend itself against one or
more such claims or cannot pay damages, it could harm the company’s reputation
and significantly affect its operations, results and financial position.
Changes in demand
Odd Molly is highly dependent on customer preferences in terms of design, quality
and price. A miscalculation of customer preferences could cause demand for Odd
Molly’s products to decline or disappear entirely, which in turn could adversely affect
the company’s operations, results and financial position.
Reputational risk
To maintain consistently high quality and protect Odd Molly’s unified concept and
values, it is essential for the company to maintain, to a significant extent, control over
its distribution network. Odd Molly must ensure that customers have a consistent
impression of its products around the world. The products must be presented in a
way that reflects the values Odd Molly stands for. If an agent or retailer takes an action
that presents Odd Molly’s products contrary to its positioning in the market or fails to
apply Odd Molly’s values and concepts, Odd Molly’s trademark and reputation could
be damaged. If Odd Molly cannot effectively ensure that its products are presented
correctly, it could adversely affect the company’s operations, results and financial position
in the long term.
Environmental risks
Odd Molly is confident that its operations are conducted in accordance with applicable
laws and regulations pertaining to the environment, health and safety. If any
violations were to occur, or if laws and regulations were amended, it could result in
significant costs or other measures that adversely affect the company’s operations,
results and financial position.
Odd Molly annual report 2011 27

Financial risks
For a description of the Group’s management of financial risks, see Note 26 Financial
risk management.
Corporate governance
Odd Molly is governed through the Annual General Meeting, the Board of Directors
and the CEO in accordance with the Swedish Companies Act and the company’s
Articles of Association. For more information on the company’s governance, see the
Corporate governance report on page 58.
Future outlook
The main reason for Odd Molly’s historically profitable growth and the foundation for
its future development, aside from creative design and consistent, long-term branding,
is its business model. Through its design, the business model facilitates further expansion
with limited capital requirements and little risk of large or obsolete inventory. The
long lead time between order and delivery means that sales for a particular financial
year can be forecast with a relatively high degree of accuracy. The company does not
intend to issue forecasts for upcoming financial years. However, Odd Molly will announce
order values twice a year, in April and October.
Order value for spring/summer 20112
In October 2011 Odd Molly announced its order value for the spring and summer
2012 collection. The order value amounted to SEK 114 million, compared with SEK
165 million for the same collection in the previous year. The decrease is partly due
to weak consumer spending in several of Odd Molly’s most important markets. For
the first half of 2012 the order value amounted to SEK 97.5 million (138.5), excluding
pre-spring merchandise valued at SEK 16.5 million (26), which was delivered in the
fourth quarter 2011. The first half-year 2012 will include a scheduled pre-fall shipment
during the second quarter in addition to the above order value. The order value for this
shipment will be announced in connection with the publication of the order value in
April 2012.
Proposed disposition of profit
The Board of Directors intends to annually test whether there is an opportunity to
issue a dividend. The Board’s goal is to annually recommend that the AGM resolve
to pay a dividend corresponding to at least 40 percent of the company’s profit to the
shareholders. Before issuing its recommendation, the Board will consider whether
there is the possibility to pay a dividend of this size. In its evaluation, the Board will
consider a number of factors, including the company’s operations, operating profit
and financial position, current and anticipated liquidity needs, expansion plans and
other significant factors. The Board of Directors of Odd Molly will recommend to the
Annual General Meeting a dividend of SEK 3.00 per share (4.50) for the 2011 financial
year.
Proposed disposition of the company’s profit
The following funds are available to the Annual General Meeting (SEK thousand):
Share premium reserve 26,418
Fair value reserve 962
Profit brought forward 49,471
Net profit for the year 10,636
Total 87,486
The Board proposes that the funds be appropriated as follows:
Dividend to the shareholders (5,752,000 shares x SEK 3.00 per share) 17,256
To be carried forward 70,230
Total 87,486
Important events after the conclusion of the financial year
No significant events have occurred from the conclusion of the financial year until the
date of the annual report’s release, March 19, 2012.
28 Odd Molly annual report 2011

Condensed financial information – Group
SEK in thousands 2011 2010 2009 2008 2007 2006 2005 2004
Results
Net sales 292,275 355,551 329,809 267,653 130,260 54,477 21,151 10,271
Operating profit, EBIT 20,074 50,668 59,179 67,509 18,457 4,932 890 –290
Net profit for the year 14,237 36,226 43,047 49,829 12,922 3,358 600 –552
Margins
Gross profit margin, % 56.0 56.6 54.0 58.4 57.2 54.9 51.1 –
Operating margin, EBIT, % 6.9 14.3 17.9 25.2 14.2 9.1 4.2 –2.8
Profit margin, % 7.3 14.5 18.2 25.9 14.4 8.6 3.1 –5.4
Profitability
Return on capital employed, % 16.2 40.2 55.6 99.1 67.6 88.5 33.1 –21.1
Return on equity, % 10.7 28.0 39.9 71.2 50.6 76.3 41.9 –155.5
Financial position
Total assets 165,304 171,012 158,461 126,905 60,082 10,512 4,702 2,386
Shareholders’ equity 126,981 138,066 120,819 94,949 45,079 6,046 2,754 112
Equity/assets ratio, % 76.8 80.7 76.2 74.8 75.0 57.1 57.7 4.7
Per share*
Equity per share, SEK 22.08 24.00 21.00 16.51 8.34 1.20 0.54 0.02
Earnings per share, SEK 2.48 6.30 7.48 8.66 2.39 0.67 0.12 –0.11
Dividend per share, SEK **3.00 4.50 3.50 3.00 0.00 0.00 0.00 0.00
Employees
Average number of employees 57 50 36 30 19 10 5 3
Net sales per employee, SEK 5,142 7,111 9,086 8,997 6,856 5,448 4,230 3,424
* Based on weighted average before and after dilution.
** Refers to proposed dividend for 2012.
Odd Molly annual report 2011 29

Consolidated statement of comprehensive income
SEK in thousands Note 2011 2010
Net sales 1 292,275 355,551
Other operating revenues 2 542 848
292,818 356,399
Operating expenses
Goods for resale –128,632 –154,436
Other external expenses 3,4 –99,901 –108,662
Personnel expenses 5 –38,843 –33,886
Depreciation/amortization of tangible and intangible fixed assets 6 –4,047 –3,348
Other operating expenses 7 –1,320 –5,399
Operating profit 20,074 50,668
Result from financial items
Interest income and similar income items 8 1,335 734
Interest expenses and similar expense items 9 –36 –
Profit after financial items 21,373 51,401
Taxes 10 –7,136 –15,176
Net profit for the year attributable to Parent Company’s shareholders 14,237 36,226
Other comprehensive income
Translation difference 52 342
Reclassified to operating profit 248 –876
Change in fair value of currency derivatives –109 1,977
Tax effect of change in fair value of currency derivatives –37 –290
Total comprehensive income for the year attributable to Parent Company’s shareholders 14,391 37,379
Earnings per share
Earnings per share before and after dilution (SEK) * 11 2.48 6.30
Proposed dividend per share (SEK) 3.00 4.50
Number of shares at year-end 5,752,000 5,752,000
Average number of shares before and after dilution 5,752,000 5,752,000
* For calculation, see also the Consolidated statement of changes in equity.
30 Odd Molly annual report 2011

Consolidated balance sheet
SEK in thousands Note Dec 31, 2011 Dec 31, 2010
ASSETS
Fixed assets
Intangible fixed assets
Tenancy rights and similar rights 1, 12 408 653
Other intangible fixed assets 1, 12 1,829 2,116
2,237 2,770
Tangible fixed assets
Equipment, tools, fixtures and fittings 1, 13 4,458 8,051
4,458 8,051
Total fixed assets 6,695 10,821
Current assets
Inventories, etc.
Finished products and goods for resale 16 27,817 23,175
Advances to suppliers 9,103 –
36,920 23,175
Current receivables
Accounts receivable 17 28,097 38,388
Derivatives 18 1,305 1,093
Other receivables 8,411 3,336
Prepaid expenses and accrued income 19 3,196 4,995
41,009 47,812
Cash and bank balances 80,680 89,204
Total current assets 158,609 160,191
SEK in thousands Note Dec 31, 2011 Dec 31, 2010
SHAREHOLDERS’
EQUITY AND LIABILITIES
Share capital (5,752,000 shares) 575 575
Other paid-in capital 26,418 26,010
Reserves 962 1,190
Retained earnings 99,027 110,291
Total shareholders’ equity 126,981 138,066
Provisions
Provisions for deferred tax 21 10,344 8,455
10,344 8,455
Current liabilities
Advances from customers 173 182
Accounts payable 12,411 5,839
Derivatives 18 – –
Current tax liabilities 499 2,607
Other liabilities 1,901 4,737
Accrued expenses and deferred income 22 12,994 11,125
27,979 24,490
TOTAL SHAREHOLDERS’
EQUITY AND LIABILITIES 165,304 171,012
Pledged assets and contingent liabilities
Pledged assets 23 2,500 2,500
Contingent liabilities None None
TOTAL ASSETS 165,304 171,012
Odd Molly annual report 2011 31

Consolidated statement of cash flows
SEK in thousands 2011 2010
Operating activities
Operating profit 20,074 50,668
Adjustments for non-cash items:
Depreciation/amortization and impairment losses 4,047 3,348
Exchange rate gains/lossesr 181 1,974
Capital gain/loss on sale of equipment 1,714 –
Interest received 1,335 734
Interest paid –36 –
27,316 56,723
Income tax paid –7,355 –21,320
Cash flow from operating activities
before changes in working capital 19,961 35,403
Cash flow from changes in working capital
Increase(–)/Decrease(+) in inventories –13,763 1,348
Increase(–)/Decrease(+) in current receivables 7,101 –7,444
Increase(+)/Decrease(–) in current liabilities 5,418 1,730
Cash flow from operating activities 18,717 31,038
SEK in thousands 2011 2010
Investing activities
Acquisition of intangible fixed assets –647 –596
Acquisition of tangible fixed assets –1,111 –5,992
Cash flow from investing activities –1,758 –6,588
Financing activities
Dividend paid –25,884 –20,132
Warrant premiums 408 –
Cash flow from financing activities –25,476 –20,132
Cash flow for the year –8,517 4,318
Cash and cash equivalents at beginning of the year 89,204 85,035
Exchange rate difference in cash and cash equivalents –7 –149
Cash and cash equivalents at year-end 80,680 89,204
32 Odd Molly annual report 2011

Condensed statement of changes in consolidated equity
Other
Total
Share paid-in Translation Fair value Retained shareholders’
SEK in thousands capital capital differences reserve earnings equity
Opening shareholders’ equity at January 1, 2010 575 26,010 121 –24 94,137 120,819
Dividend – – – – –20,132 –20,132
Other comprehensive income – – 263 830 36,286 37,379
Closing shareholders’ equity at December 31, 2010 575 26,010 384 806 110,291 138,066
Opening shareholders’ equity at January 1, 2011 575 26,010 384 806 110,291 138,066
Dividend – – – – –25,884 –25,884
Warrant premiums – 408 – – – 408
Other comprehensive income – – –330 101 14,620 14,391
Closing shareholders’ equity at December 31, 2011 575 26,418 55 907 99,027 126,981
Odd Molly’s share capital amounted to SEK 575,200 at year-end, distributed among 5,752,000 shares with a quota value of SEK 0.1. Each share carries one vote and the same entitlement to
share in the company’s assets and earnings. Odd Molly’s operations are financed in their entirety with shareholders’ equity. The Board of Directors of Odd Molly has established a goal that the
equity/assets ratio will be at least 40 percent.
Odd Molly annual report 2011 33

Corporate governance
Odd Molly International AB is a publicly listed Swedish company and its corporate
governance is therefore based on Swedish rules and legislation, primarily the
Swedish Companies Act, NASDAQ OMX’s rules for issuers, the Swedish Code
of Corporate Governance, the Articles of Association and other pertinent rules.
Swedish Code of Corporate Governance
Odd Molly has been listed on NASDAQ OMX Stockholm since June 21, 2010.
Since 2010 Odd Molly has fully applied the Swedish Code of Corporate
Governance. The Board of Directors is responsible for continuously monitoring
compliance with the code by the Board and management as well as the company
otherwise.
Annual General Meeting
Shareholders exercise their decision-making authority at the Annual General
Meeting (AGM), the company’s highest decision-making body. Shareholders
who are recorded in the share register and have notified the company have the
right to attend the AGM and to vote their shares. Shareholders who are unable
to be present in person may be represented by proxy.
Among the matters required to be dealt with at the AGM are the adoption of
the consolidated balance sheet and income statement, the appropriation of the
company’s profit or loss, the compensation principles for senior executives and
the discharge of the Directors and CEO from liability. Based on a proposal from
the Nomination Committee, the AGM elects the Directors until the conclusion
of the next AGM.
Annual General Meeting 2011
Odd Molly’s Annual General Meeting for the financial year 2011 will be held at
2 PM (CET) on April 26 at Södra Teatern in Stockholm. Information on the time
and location, how to notify the company to attend and how shareholders can
have an issue brought before the meeting is available on the company’s website,
www.oddmolly.com, and on page 66 in this annual report.
Nomination Committee
The 2009 AGM resolved that the company will have a Nomination Committee.
The mission of the Nomination Committee is to evaluate the sitting Board of
Directors and present a proposal on the Directors, the Chairman and Board fees
to the next AGM where a Board election is scheduled to be held. In applicable
cases, the Nomination Committee also presents a proposal on the auditors and
their fees as well as the Chairman of the AGM. The proposals are presented to
the Annual General Meeting.
The Nomination Committee for the AGM on April 26, 2012 is comprised of
Tom Wikström (Chairman), Christer Andersson and Rutger Arnhult. Prior to the
AGM, the Nomination Committee held three meetings at which minutes were
kept. No remuneration was paid for participation on the Nomination Committee.
Board of Directors
Odd Molly’s Board of Directors consists of six members elected by the
Annual General Meeting and no deputies. The Board of Directors is comprised
of Christer Andersson (Chairman), Mia Arnhult, Karin Jimfelt-Ghatan, Patrik
Tillman, Nils Vinberg and Karin Wallin-Norman. None of the Directors, except
Karin Jimfelt-Ghatan, are employed or have an employment-like relationship
with the Group or any subsidiary. The majority of the Directors elected at the
AGM are independent in relation to the company and the management. For a
more detailed presentation of Odd Molly’s Board of Directors, see page 64.
Board compensation
During the financial year 2011 the Chairman of the Board received fees of SEK
150,000 (150,000) and other members who are not employed by the company
received fees of SEK 100,000 (100,000) each. In total, SEK 550,000 (550,000)
was paid in Board fees, in accordance with the Board remuneration resolved by
the AGM.
34 Odd Molly annual report 2011

Board work
The duty of the Board of Directors is to manage the company’s affairs on
behalf of the shareholders. The Board’s work is governed by the Companies
Act, the Articles of Association and the current rules of procedure, including the
instruction on the delegation between the Board and the CEO.
In 2011 the Board held 14 (13) meetings at which minutes were kept. During
these meetings the Board discussed the financial results, balance sheet total, interim
reports and annual report, as well as market and risk analysis, the direction
of the business and organizational issues.
Number of meetings attended
2009 2010 2011
Christer Andersson 12 12 14
Mia Arnhult 12 13 14
Karin Jimfelt-Ghatan 7 8 7
Patrik Tillman 12 12 14
Nils Vinberg* 8 11 13
Karin Wallin-Norman 10 13 14
Total number of meetings 13 13 14
* Joined the Board at Odd Molly’s AGM on April 22, 2009.
Audit Committee
The Board of Directors has appointed an Audit Committee from among its
members whose duty to prepare the Board’s work to assure the quality of the
financial reporting. The Audit Committee consists of Directors Karin Wallin-
Norman (Chairman), Mia Arnhult and Nils Vinberg. During the year the Audit
Committee held three meetings at which minutes were kept, which the company’s
CFO and auditor also attended.
Compensation Committee
The Board of Directors has appointed a Compensation Committee from
among its members whose duty, within the framework of the compensation
guidelines for senior executives established by the AGM, is to prepare compensation
issues pertaining to the CEO and other senior executives. The Compensation
Committee consists of Directors Christer Andersson (Chairman) and Nils
Vinberg. During the year the Compensation Committee held two meetings at
which minutes were kept.
Auditors
The auditors are elected by the shareholders at the AGM. The auditors review
the company’s annual report, consolidated financial statements and accounting
records, as well as the day-to-day administration of the Board and the CEO.
Ernst & Young was elected by the 2007 AGM as the company’s auditor for a
period of four years and was reelected at the 2011 AGM. The chief auditor is
Anders Lindby. The external audit is conducted according to generally accepted
accounting principles in Sweden. The auditors have submitted verbal and written
reports to the Audit Committee and the Board of Directors on their audit and
review of the internal control.
Auditors’ remuneration
The remuneration for the company’s auditor, Ernst & Young AB, is payable
upon approval. For the financial year 2011 total remuneration amounted to SEK
307,000, of which SEK 253,000 related to the audit fees.
Chief Executive Officer (CEO) and Group management
The CEO manages the Group and its operations within the framework resolved
by the Board. The CEO is responsible for keeping the Board of Directors informed
of the company’s development, reporting on significant deviations from
established business plans and events that significantly impact the company’s
operations, and preparing the necessary background information for the Board
of Directors, e.g., regarding the company’s international expansion, investments
and other strategically important issues.
Odd Molly annual report 2011 35

Group Management, which is led by the CEO, consists of the managers of key
operating areas within Odd Molly. Group Management holds monthly meetings
at which minutes are kept and where operational issues are discussed. Moreover,
Group Management annually formulates a business plan that is adopted by the
Board. Daily contact between members of Group Management is critical to
effective governance and management.
On December 31, 2011 Group Management consisted of Anna Attemark (VD),
Henk Bossuyt, Johanna Bäckstrand, Per Holknekt, Jennie Högstedt Björk, Karin
Jimfelt-Ghatan, Kristin Roos and Håkan Rönnberg. For a more detailed presentation
of Group Management, see page 65.
The Chairman conducts an annual performance review of the CEO in
accordance with the CEO’s instructions.
Remuneration to the CEO and senior executives
The base salary for the outgoing CEO 2011 amounted to SEK 1,120,000
(1,020,000). The outgoing CEO was entitled to a monthly pension provision
corresponding to 16 percent of her base salary. Pension expenses amounted
to SEK 192,600 (160,000) in 2011. The company and the CEO had agreed to a
term of notice of 12 months if she is terminated by the company and 6 months
is she resigned.
On December 14, 2011 Anna Attemark took over as CEO and during the year
received a base salary corresponding to SEK 106,500. The new CEO is entitled
to a monthly pension provision corresponding to 30 percent of her base salary.
The terms of the compensation package for the CEO are resolved by the
Board. The company and the CEO have a mutual term of notice of 12 months.
Senior executives refer to seven persons, who together with the CEO formed
the Group Management in 2011. The base salaries paid to senior executives,
excluding the CEO, amounted to SEK 4,447,900 (4,559,300) in 2011. Odd Molly
pays annual premiums to a defined-contribution pension plan corresponding to
8-16 percent of each executive’s total salary. Pension expenses amounted to
SEK 776,300 (741,100) in 2011. Senior executives have a term of notice of
3-6 months.
Remuneration to the CEO and other senior executives was paid exclusively by
the Parent Company. No variable compensation has been paid.
Incentive program
Odd Molly has one outstanding incentive program based on warrants in Odd
Molly International AB. According to the program, which was established by the
Extraordinary General Meeting on November 25, 2011 based on a proposal from
Odd Molly’s Board of Directors, 300,000 warrants were issued to Odd Molly
International AB for transfer to the new CEO and Vice President.
Internal control
The Board of Directors is responsible for corporate governance and internal
control. The overarching purpose is to protect the company’s assets and,
consequently, the shareholders’ investment. The Board is also responsible for
ensuring that financial reporting is prepared in accordance with current laws.
By reviewing all critical accounting issues and the financial reports issued by
the company, the Board is able to assure the quality of Odd Molly’s financial
reporting. This requires the Board to treat issues on internal control, compliance,
material uncertainties in reported values, any uncorrected inaccuracies, events
after the balance sheet date, changes in estimates and assumptions, any verified
irregularities and other conditions that affect the quality of the financial reports.
36 Odd Molly annual report 2011

Control environment
An important part of the internal control is to formulate and establish a number
of fundamental policies, guidelines and frameworks for the company’s financial
routines and financial reporting. The current finance policy was adopted by the
Board on February 18, 2010. The financial handbook, which is updated continuously,
is an important tool to assure good internal control over the company’s operations.
Operations are monitored and governing documents are revised continuously
and communicated to all affected employees. The Board continuously evaluates
operations and results through a reporting packet that contains an income
statement, balance sheet and key financial ratios as well as other material
operational and financial information. The other policies and guidelines established
by the Board that are important to internal control are the communication
policy, IT policy and gender equality policy. Moreover, the CEO decides on
financial job descriptions, which are available to the finance department on the
company’s server. Odd Molly has a business area-based organizational structure
where each business area manager participates in the company’s management
team and is responsible for the performance of their business area. All of
Odd Molly’s business areas share the same structure, financial system, chart of
accounts and policies, which facilitates efficient routines and control systems.
Risk assessment
Odd Molly works continuously and actively with risk analysis, risk assessment
and risk management to ensure that the risks the company is exposed to are
managed efficiently within the established framework. The risk assessment
includes, among other things, the company’s administrative routines for invoicing
and order processing. Balance sheet and income statement items with is a risk
of material error are also reviewed continuously. Odd Molly uses prepayments
when its credit analysis has a negative outcome or for new, smaller customers,
as well as with active control of currency risks.
Control activities
Control structures are designed to manage the risks that the Board of Directors
considers material to the internal control of financial reporting. These control
structures include of an organization with clearly defined lines of authority,
routines and job descriptions. Control activities include reporting on decisionmaking
processes and procedures for important decisions (e.g., new major
customers, investments, inventories, contracts, etc.) as well as reviews of all
financial reports that are presented.
The financial handbook covers, among other things, control activities such as
reconciliations, authorizations, account reconciliations, financial systems and
benchmarks. Authorization instructions are updated continuously. The right to
authorize payments is also treated in this instruction. Approval is required by at
least two persons jointly from the finance department or by the CEO and the CFO.
Information and communications
The company’s governing documents in the form of policies, guidelines and
manuals for internal and external communications are updated continuously
and communicated internally through the appropriate channels such as internal
meetings and internal mail. The company’s communication policy, which contains
guidelines on how information is released, applies to communications with
outside parties. The purpose of the policy is to ensure that Odd Molly correctly
and thoroughly meets all its information obligations according to current laws
and regulations.
Monitoring and oversight
The Board continuously monitors the effectiveness of the internal control based
on the preparations by the Audit Committee. The Board makes certain that the
company’s auditors review the financial report for the third quarter. Lastly, the
Board issues a brief report on how internal control was implemented during the
year. To date the Board has not found reason to establish a separate internal
audit unit, although it evaluates annually whether one is needed.
Odd Molly annual report 2011 37

“you are perfect
because you are not”
38 Odd Molly annual report 2011
Design and production: Odd Molly,
Vero Kommunikation, Soformia and
Vitpunkt. Printing: Åtta.45, 2012.

ubrik
odd molly
letting my heart do the thinking
for more info go to
oddmolly.com